Blockchain and Big Data are two emerging technologies that are disrupting many traditional industries. Though they have different applications and use cases, much has been talked about the impact of them on each other. In this article, I will explore how these technologies can benefit from each other.
The Significance of Blockchain in Big Data
Blockchain is a technology that enables users to send things to others securely without any third party intermediaries. It is immutable, transparent, and tamper-proof. In simple terms, Blockchain is a database system that behaves like an open ledger for storing and managing transactions. Every transaction gets recorded in the database called as block and these contain details transaction timestamp as well as a link to the previous and next blocks. Blockchain was originally developed to enhance the credibility of Bitcoin.
Big data refers to the huge volume of data that is generated every day. The two primary challenges when it comes to this trending technology pertains to its storage and data integrity and authenticity. Hadoop is a viable solution to the problem of storage, which means that the only problem to solve relates to data integrity and authenticity. This problem is significant when you are working with huge data sets which includes data in different formats and sources. Data like those generated internally from mobile application and social media has a high probability of being inaccurate and might result in authentication issues later on.
Authentication Of Big Data
Blockchain technology can be used for this very purpose. Already a large number of companies have adopted this technology to authenticate their data. As Blockchain requires multiple signatures at every stage of data access, companies can use it to protect their data. A diverse range of companies belonging to healthcare, retail to public administration have started foraying into blockchain to combat data leaks hacking and to ensure a highly efficient authentication mechanism.
Generally, real- time transfers costs a lot of money and are also messy. One of the main risks associated with it is double- spending. Double-spending is a kind of transaction failure which occurs when a single authentication token gets used two times.This is a grave issue which can be easily avoided with blockchain technology. Blockchain can also make data analytics more transparent. As opposed to the current system, this technology is designed to automatically dismiss inputs that look suspicious or cannot be verified. This can especially prove useful for analysts in the retail industry as they get a chance to work with transparent data. This means that the accuracy rate of the customer patterns that emerge during the analysis of this data will be more than what you can achieve today.
Big Data Tools for Blockchain
Organizations looking to find ways to incorporate Blockchain technology in Big Data will soon discover new innovative tools to achieve it. One example of such tool is BigChainDB built on top of MongoDB. If organisations add features like audit trails, capability to execute queries rapidly in an efficient manner, and scalability, it will become easier for organizations to develop blockchain based apps that meet company standards. With the emergence of these tools, organizations will adopt blockchain technologies and get an edge over their competition.
Blockchain will represent 20% of Big Data Market
As per the latest industry report, by the year 2030, we can expect blockchain ledger to be worth upto 20% of the total big data market, and generating an annual revenue up to $100 billion. This would exceed the combined annual revenue of Mastercard, Visa and PayPal.
Companies that uses blockchain technology will start using big data analytics to track transactions and improve their decision making. This is one of the reasons why new Data Intelligence services are coming up to enable government, business and financial institutions to identify who they are interacting with within the blockchain and discover patterns that are hidden.
As you can see, Big Data and Blockchain technologies are compatible with each other. For people looking to cement their career in Data Science, blockchain is one of the most useful technologies to learn. There are several blockchain courses and certifications today that can verse people in this area.